By Harry Papachristou
ATHENS, Sept 12 (Reuters) - Greece's main opposition leader George Papandreou, whose socialist party is expected to win snap elections on Oct. 4, pledged on Saturday to take measures fast to bring the country out of economic crisis.
Within its first 100 days, his government would pass laws to slash waste, grant relief to businesses and households and boost public investment as part of a 3-year stability and growth plan, Papandreou said in a speech to businessmen in Thessaloniki, northern Greece.
'It's time to roll up our sleeves and work all together,' said Papandreou, who hopes to bring the socialist PASOK party back to power after more than five years in opposition.
PASOK's popularity rose after the ruling conservative New Democracy party of Prime Minister Costas Karamanlis was buffeted by a string of scandals. Hurt by the global crisis, the economy risks sliding into its first recession in 16 years.
Polls show the socialists leading New Democracy by more than 6 percentage points, but they may not win an outright majority.
Karamanlis, who has ruled with a parliamentary majority of one seat, this month called snap elections mid-way through his second term, seeking a fresh mandate to take tough economic measures.
BUDGET WOES
Greece's budget deficit rose to 5 percent of GDP last year, far above a euro area ceiling of 3 percent, and public debt is seen exceeding 100 percent of GDP in 2009. Standard & Poor's in January cut the nation's debt rating, which is the lowest among the 16 countries sharing the euro.
Papandreou promised to slash waste and review defence spending to narrow the budget deficit, but said it would require more than two years to bring it below the euro area limit.
He said he planned to stimulate the economy by increasing public investment to 4 percent of GDP, grant public sector wage increases above-inflation and close tax loopholes for companies.
'The decay we are witnessing will not just go away,' Papandreou said. 'We need to kick the economy back in action again'.
Papandreou promised to preserve households' buying power by freezing the prices of state-controlled utilities for one year, and to save crisis-stricken companies from bankruptcy by suspending their bank debt obligations for the same period.
Karamanlis said last week that if he is re-elected, he will freeze public sector pay and accelerate privatisations to contain public spending and cut the national debt.
Papandreou said his opponent's policy would be catastrophic. 'If we freeze wages now, we'll just freeze the market,' Papandreou said.
(Editing by Mark Trevelyan)
((harry.papachristou@thomsonreuters.com; +30 210 3376455;
Reuters Messaging: harry.papachristou.reuters.com@reuters.net)) ($1=.6847 Euro) Keywords: GREECE ELECTION/ (For a TAKE A LOOK on Greece's snap elections click on ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ATHENS, Sept 12 (Reuters) - Greece's main opposition leader George Papandreou, whose socialist party is expected to win snap elections on Oct. 4, pledged on Saturday to take measures fast to bring the country out of economic crisis.
Within its first 100 days, his government would pass laws to slash waste, grant relief to businesses and households and boost public investment as part of a 3-year stability and growth plan, Papandreou said in a speech to businessmen in Thessaloniki, northern Greece.
'It's time to roll up our sleeves and work all together,' said Papandreou, who hopes to bring the socialist PASOK party back to power after more than five years in opposition.
PASOK's popularity rose after the ruling conservative New Democracy party of Prime Minister Costas Karamanlis was buffeted by a string of scandals. Hurt by the global crisis, the economy risks sliding into its first recession in 16 years.
Polls show the socialists leading New Democracy by more than 6 percentage points, but they may not win an outright majority.
Karamanlis, who has ruled with a parliamentary majority of one seat, this month called snap elections mid-way through his second term, seeking a fresh mandate to take tough economic measures.
BUDGET WOES
Greece's budget deficit rose to 5 percent of GDP last year, far above a euro area ceiling of 3 percent, and public debt is seen exceeding 100 percent of GDP in 2009. Standard & Poor's in January cut the nation's debt rating, which is the lowest among the 16 countries sharing the euro.
Papandreou promised to slash waste and review defence spending to narrow the budget deficit, but said it would require more than two years to bring it below the euro area limit.
He said he planned to stimulate the economy by increasing public investment to 4 percent of GDP, grant public sector wage increases above-inflation and close tax loopholes for companies.
'The decay we are witnessing will not just go away,' Papandreou said. 'We need to kick the economy back in action again'.
Papandreou promised to preserve households' buying power by freezing the prices of state-controlled utilities for one year, and to save crisis-stricken companies from bankruptcy by suspending their bank debt obligations for the same period.
Karamanlis said last week that if he is re-elected, he will freeze public sector pay and accelerate privatisations to contain public spending and cut the national debt.
Papandreou said his opponent's policy would be catastrophic. 'If we freeze wages now, we'll just freeze the market,' Papandreou said.
(Editing by Mark Trevelyan)
((harry.papachristou@thomsonreuters.com; +30 210 3376455;
Reuters Messaging: harry.papachristou.reuters.com@reuters.net)) ($1=.6847 Euro) Keywords: GREECE ELECTION/ (For a TAKE A LOOK on Greece's snap elections click on ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.